🔥Ten years of trading cryptocurrencies, from huge losses to great wealth, I’ve realized nine rules of the crypto world!

Not much content, but highly valuable. Understanding one rule can help you avoid pitfalls; mastering several will make your journey smoother.
1. The asymmetry of gains and losses. When you have 1 million and earn 100%, it becomes 2 million; then a 50% loss brings you back to 1 million. Explanation: Losses happen more easily than gains, so risk control is essential.
2. The mathematical truth about price fluctuations. A 10% increase on the first day followed by a 10% decrease on the second day will reduce 1 million to 990,000. The reverse is also true. Price swings are not symmetrical; chasing rallies and panic selling often lead to losses.
3. Volatility erodes long-term returns. Three consecutive years of +40%, -20%, +40%, -20%, +40%, -20% result in an annualized return of only 5.83%. Explanation: Big ups and downs may yield high returns in some years, but over the long term, they lower overall gains.
4. 1% daily gains are a fantasy: Appearing simple, earning 1% daily is hard to sustain long-term. Chasing quick profits only accelerates liquidation.
5. Consistently high returns are unrealistic: Achieving an annualized return of 200% year after year is nearly impossible; drawdowns are normal in the market.
6. Long-term compound interest requires stability: Doubling your investment in 10 years needs an annualized return of 25.89%. It’s challenging but feasible.
7. Replenishing positions makes sense: Buying 10,000 units at 10 yuan, then buying another 10,000 at 5 yuan, results in an average cost of 6.67 yuan, not 7.5 yuan. The weighting of purchase prices affects the average cost.
8. Locking in positions requires risk management: Taking profits and reducing holdings resets the cost basis to zero. Subsequent declines can still cause losses; paper gains don’t equal actual cash in hand.
9. Portfolio hedging to manage risk: An 80% low-risk + 20% high-risk allocation can aim for high returns while protecting capital.